Question 41 Chapter 7 – Class 12 Part 1 Unimax

Question 41 Chapter 7 – Class 12 Part 1 Unimax

41. Leena and Cheena commenced business on 1st January,- 2022 with capitals of 70,000 and 60,000 and agreed to share profits in the ratio of 3 : 2. The deed provided that partners were entitled to interest on capital at 10% p.a. and interest on drawings would be charged at 12% p.a. The profits of the firm for the year ended 31st December 2022 before taking into account the terms of the deed. On 31st December 2022 they decided to dissolve the firm. Creditors of the firm on that date were 28,000 and cash in hand stood at 16,000. Assets realized 1,41,600. During the year drawings of the partners were Leena 15,000 and Cheena 10,000. Close the books of the firm.

The solution of Question 40 Chapter 7 – Class 12 Part 1 Unimax: -

Realisation a/c

Particulars		Amount	Particulars		Amount
To Sundry Assets		1,77,000	By Sundry creditors		28,000
To Cash A/c		28,000	By Cash A/c		1,41,600
- Creditors			(assets realized)
			By Loos on realisation transferred to Capital A/cs
			Leena	21,240
			Cheena	14,160	35,400
		2,05,000			2,05,000

Partner’s Capital a/c

Particulars	Leena	Cheena	Particulars	Leena	Cheena
To Realisation A/c	21,240	14,160	By balanced b/d	90,200	74,800
To Cash A/c	68,960	60,640
	90,200	74,800		90,200	74,800

Cash A/c

Particulars	Amount	Particulars	Amount
To balanced b/d	16,000	By Realisation A/c	28,000
To Realisation A/c	1,41,600	By Leena’s capital A/c	68,960
-Assets realised		By Cheena’s capital A/c	60,640
	157,600		1,57,600